The Dow Jones FXCM US Dollar Index is correcting lower after hitting a six-month highhaving rallied as expected following the appearance of a Bullish Engulfing candle pattern. A daily close above the 50% Fibonacci expansion at 10652 exposes the 61.8% level at 10677. Alternatively, a move below the 38.2% Fib at 10627 opens the door for a challenge of the 23.6% expansion at 10595.

Our long-term US Dollar outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding long via theMirror Trader US Dollar currency basket.

Daily Chart - Created Using FXCM Marketscope 2.0

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.